While certainly paling in comparison to Bernie Madoffs massive Ponzi scheme, ZeekRewards might be one of the largest Ponzi schemes in history as measured by the sheer number of victims affected. Calif. Bank & Trust Beats Suit Over Depositor's Ponzi Scheme Red flags, copy-with-cite, case summaries, annotated statutes and more. Three men were sent back to federal prison after they concocted a Ponzi scheme in prison that promised lucrative returns through the distribution of comic book rights. In addition to fulfilling their divine duties, Mr. Hibbert told parishioners he could generate monthly returns of up to 8.5% through his skills as a foreign currency trader. A .gov website belongs to an official government organization in the United States. - Check with a trusted financial adviser, broker, or attorney about any investments you are considering. Investors are promised above-average returns that generally carry little risk. . He pleaded guilty to a count of wire fraud in May. KVUE Stock IPO: When Does Kenvue Go Public? No Thanks Deepal Wannakuwatte, the former professional tennis team owner who ran one of the biggest Ponzi schemes in Sacramento history, has been ordered to repay his victims $108.2 million. by 2Paragraphs in Culture | August 17, 2016, Deepal Wannakuwatte, American Greed (CNBC). Viking Financial Group (Viking) was owned and operated by Steven Palladino, his wife Lori Palladino, and his son, Greg Palladino. The victims will never be whole again from the fraud totaling more than $230 million, but rest assured they will have the comfort of knowing Wannakuwatte will be incarcerated for many years to come. RelyAid did have one contract with the Department but it was worth only $25,000. . In sum, the Court DENIES Defendant's request for compassionate release because Defendant has not met his burden to show there are extraordinary and compelling reasons for his release. Full title:UNITED STATES OF AMERICA, Plaintiff, v. DEEPAL WANNAKUWATTE, Defendant. The video promised that the VCMs would generate income for years, and promised that a $3,500 investment could produce huge returns. The alleged mastermind, Joseph Signore, is also accused of soliciting investors via emails that included a Bible passage intended to create a false sense of security and appeal to the religious beliefs of investors. We are committed to aggressively pursue those who attempt to circumvent the law for personal gain., This case shows that the appearance of success can mask a tangled financial web of lies, said Acting Special Agent in Charge Thomas McMahon, IRS-Criminal Investigation. SACRAMENTO, Calif. Deepal Wannakuwatte, 63, of Sacramento, was sentenced today to 20 years in prison for a long-running fraud scheme, announced United States Attorney Benjamin B. Wagner, Special Agent in Charge Monica M. Miller of the FBIs Sacramento Field Office, Acting Special Agent in Charge Thomas McMahon for the IRS-Criminal Investigation, and Special Agent in Charge Wade V. Walters of the Federal Deposit Insurance Corporation Office of Inspector General. . I want to commend the FBI and IRS-CI for detecting and swiftly stopping this scheme before it caused even greater losses., Wanakuwattes victims individuals, businesses, government agencies, venture funds, and financial institutions suffered as his elaborate scheme collapsed. - And if you think youve been scammed, report it to the Securities and Exchange Commission, your states securities regulator, or a law enforcement agency. D & A INTERNATIONAL IMPORT . Many of the victims will never be made whole, Wagner said. See https://www.cdc.gov/coronavirus/2019-ncov/need-extra-precautions/groups-at-higher-risk.html (listing pulmonary hypertension but not essential (primary) hypertension and indicating those with hypertension should manage their blood pressure by taking medication as directed) (last visited July 22, 2020). (ECF No. On February 4, 2014, the Capitals, after 28 seasons in Sacramento, announced their move to Las Vegas. The. He shows up at a funeral populated by people he was stealing from, Hooper said. Indeed, authorities alleged that Rocco even used his position as club president to withdraw nearly $67,000 from the clubs bank accounts a move that nearly depleted club coffers if not for the generosity of club benefactors to cover the shortfalls. He has been held without bail since his arrest in late February. American Greed airs Thursdays at 10pm on CNBC. 501 I Street, Suite 10-100 The indictment alleges that between October and December 2011, Wannakuwatte provided Bridge Bank with a number of false documents, including personal and corporate tax returns that overstated his gross income and the gross receipts and sales for IMG, a false corporate financial statement from IMG that was purportedly reviewed by a CPA, and a false accounts receivable ledger detailing more than $25 million in accounts receivable from the VA. This ruling concludes the federal criminal prosecution; civil proceedings in the United States Bankruptcy Court are ongoing. Since 2008, at least 500 Ponzi schemes were uncovered worldwide, including Bernard Bernie Madoffs legendary $17 billion scheme. Modelled Employees (all sites): ? ) or https:// means youve safely connected to the .gov website. We thank the IRS Criminal Investigation and FDIC Office of Inspector General for their partnership throughout this investigation. (ECF No. Marlon Gary Hibbert and Verna Hibbert were charged with 38 criminal counts in mid-2013 by Toronto police, who alleged that the pair lived a luxurious lifestyle by misappropriating investor funds. The dependable returns, as well as the use of advertising featuring popular Indian film stars, caused the scheme to spread like wildfire. Guru operated Susi Emu Farms (Susi Farms), which promised potential investors a weekly return of $120 in exchange for a $3,000 investment that supposedly purchased a baby emu. The case against Deepal Wannakuwatte was already one for the books: a successful immigrant businessman, owner of a professional tennis team, admitting he had perpetrated one of the largest Ponzi. Gurudeo Buddy Persaud, 47, was arrested and charged with operating a Ponzi scheme that promised risk-free returns derived from investing in the futures markets and other markets. The functioning of a Ponzi scheme is inherently simple. When Hoopers mother died four years ago, Wannakuwatte attended the funeral. Next: $125 Million Latex Glove Ponzi Scheme. 3582(c)(1)(A) sets forth a rare exception to the general rule. U.S. observes National Crime Victims Rights weekpromoting victims rights and honoring crime victims and those who advocate on their behalf. But prosecutor Michael Beckwith had called the evidence overwhelming, and defense attorney Donald Heller said it was clear almost from the start that a plea bargain made more sense than a trial. He falsely claimed that these companies did tens of millions of dollars in business with federal agencies every year, most notably the Department of Veterans Affairs. From behind cars, Deepal Wannakuwatte tries to convince his own mother his sentencing isn't nearly as bad as it sounds. We thank the IRS Criminal Investigation and FDIC Office of Inspector General for their partnership throughout this investigation. A lock ( Wagner said losses to investors totaled around $100 million. A locked padlock Defendant requests the Court reduce his term of imprisonment due to the COVID-19 pandemic. The fraud has aged him and I pray daily he will survive.. Subscribe Deepal Wannakuwatte. From 2002 until his arrest in February 2014, Wannakuwatte defrauded between 150 and 200 individuals, companies, and government entities out of $230,000,000 through a classic Ponzi scheme. Get FBI email alerts . - Dont believe everything youre told. International Manufacturing Group, Inc. Company Profile | West This equates to roughly $6.3 billion per year of investor wealth lost to Ponzi schemes or nearly the annual GDP of Africas Republic of Niger. Make your practice more effective and efficient with Casetexts legal research suite. After their release from prison, the trio formed Sundown Entertainment Inc. (Sundown), which purported to specialize in the distribution of film and comic-book rights. Heller denied that. However, Persauds trading strategy of relying on lunar cycles to make trades was not only undisclosed to investors, but also generated more than $400,000 in losses. Little if any legitimate investing actually takes place, and the Ponzi scheme depends on the continuous flow of funds from new investors to meet obligations to existing investors. Deepal Wannakuwatte, former owner of the Sacramento Capitols professional tennis team, has been ordered to pay more than $100 million in restitution to victims of a decade-long Ponzi scheme he perpetrated. The Government also submits Defendant's BOP medical records filed under seal which do not include any information about Defendant's claimed serious lung disorders, severely compromised immune system, or gastrointestinal bleeding. Deepal, you are a sociopath, he said. Although Defendant claims to suffer from multiple, serious medical conditions, he fails to submit any medical documentation to confirm that he actually suffers from those conditions. From 2005 to 2010, the Hibberts oversaw a congregation at the Masonic Church of God in Torontos east end. As the Government points out, the CDC has not listed essential (primary) hypertension as a condition that puts individuals at a higher risk of severe illness. 20.) One of the properties Wannakuwatte hasnt yet surrendered is his West Sacramento medical company, whose assets were frozen after a group of investors sued. For more than decade, up until February 2014, Sacramento businessman (and Ponzi scammer extraordinaire) Deepal Wannakuwatte fooled his investors and his lenders into believing that he and his. He was indicted in March. With the millions he collected, Wannakuwatte a former owner of the now defunctSacramento Capitals professional tennis team bought real estate in Hawaii, Oregon and California. emailStay Connected Florida authorities arrested four people and charged them with orchestrating a $70 million Ponzi scheme that promised hefty returns to investors who thought their returns were coming from an investment in a virtual concierge machine. 3553(a) (" 3553(a)") factors do not support a reduced sentence. Then last week he turned the. While the forfeitures will go toward restitution, the remainder of the roughly $105,000,000 will be paid back at a minimum rate of a mere $25.00 per quarter during the course of his incarceration. Toronto police have also been unable to account for several million dollars, which they believe was diverted to an offshore bank account in Panama. The Court is mindful that people with certain medical conditions, including hypertension, can be more vulnerable to COVID-19. Casetext, Inc. and Casetext are not a law firm and do not provide legal advice. In total, the venture raised over $10 million from at least 40 investors. Jordan Maglich is a securities attorney with Wiand Guerra King P.L. A thief, a serial thief.. Assistant United States Attorneys Michael Beckwith and Kevin Khasigian are prosecuting the case. A thief, a serial thief. In February 2015, he was ordered to forfeit more than $3 million worth of real estate, vehicles, interests in financial accounts, cash, and business interests. SACRAMENTO, CAOn Thursday, a federal judge ordered Deepal Wannakuwatte, 64, of Sacramento, to pay $108,199,425 in restitution to victims of his long-running fraud scheme, United States Attorney. He falsely claimed that his companies did tens of millions of dollars in business with federal agencies every year, most notably the Department of Veterans Affairs. 1125 N. Charles St, Baltimore, MD 21201. In addition, Persaud touted his status as a certified financial planner to assure investors that their funds were safe. According to the indictment, beginning in September 2011, Wannakuwatte sought a line of credit from Bridge Bank. As it is, the Court has no way of knowing the extent of Defendant's hypertension, and Defendant fails to provide any evidence to confirm the existence or extent of his other alleged medical conditions. For its part, the Government correctly notes that the presentencing report ("PSR") indicates Defendant underwent full knee replacement in 2012 and injured his left wrist in May 2014, but otherwise indicates Defendant is in good health. But the hourlong hearing in U.S. District Court didnt lack for drama. For the foregoing reasons, the Court concludes Defendant is neither terminally ill nor subject to a serious or unrecoverable condition that substantially diminishes his ability to provide self-care within a BOP facility. /content/aba-cms-dotorg/en/groups/litigation/committees/criminal/practice/2015/sacramento-capitols-former-owner-ordered-to-pay-restitution-in-ponzi-scheme. Get FBI email alerts This information or any portion thereof may not be copied or disseminated in any form or by any means or downloaded or stored in an electronic database or retrieval system without the express written consent of the American Bar Association. The American Greed episode Medical Gloves with Holes tells the story of Deepal Wannakuwatte. Theres no way I can make the victims whole, Nunley said. Sacramento businessman Deepal Wannakuwatte indicted on bank fraud In what is believed to be a first, criminal charges were brought against a Massachusetts husband, wife and son based on charges the trio operated a Ponzi scheme that duped investors out of at least $10 million. 135.) Ponzi defendant Wannakuwatte pleads Fifth in bankruptcy hearing BOP records do, however, confirm Defendant has been diagnosed with essential (primary) hypertension. at 4.) In his highprofile pursuit for prestige and financial gain, Wannakuwatte had no regard for public trust and the financial stability of his victims, said Special Agent in Charge Monica M. Miller of the Sacramento Division of the Federal Bureau of Investigation. In his highprofile pursuit for prestige and financial gain, Wannakuwatte had no regard for public trust and the financial stability of his victims, said Special Agent in Charge Monica M. Miller of the Sacramento Division of the Federal Bureau of Investigation.
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